NARELDA JACOBS:
A crackdown is looming for social media influencers who aren't properly disclosing commercial partnerships in their posts, potentially duping their followers into buying products. Joining us now is Assistant Treasurer Stephen Jones. Minister, more than a hundred influencers were dobbed in after a call‑out on Facebook by the ACCC. So, one hundred, is that just the tip of the iceberg?
STEPHEN JONES:
Narelda, it is the tip of the iceberg, and the important thing about this is sending a message to people who are using Instagram, Facebook, in fact all of the social media platforms, TikTok and the like. The internet is not a law‑free zone. If you are conducting commerce online, then the rules that apply in bricks and mortar and to mainstream media also apply online, and we want to ensure that if people are getting cash for comment, then they declare it. We want to ensure that when people are promoting products online, that they're telling the truth, and it's a message to the influencers, but it's also a message to the businesses who are paying money or providing products to influencers, that they have a responsibility as well.
JACOBS:
The penalties are pretty steep; $2.5 million in a fine. That's pretty harsh, isn't it?
JONES:
Yeah, they're the penalties that apply in the existing law. Can I just make this point? The objective of this week's exercise is not to slap people with a huge fine, it's to give a wake‑up call to people to say, the Internet is not a law‑free zone, social media is not a law‑free zone. If you're doing your commerce, if you're advertising and promoting stuff online, then the rules that apply to you as a broadcaster or to radios or TVs about telling the truth, about ensuring you're not misleading people or deceiving them into the nature of your products, or your relationship with the business, they apply as well.
JACOBS:
We would never mislead anybody here, Stephen; you can be assured of that!
JONES:
Not suggesting for a moment that you would!
JACOBS:
The main issues seem to be beauty, lifestyle, parenting and fashion influencers. So, what kind of damage can this sort of non‑disclosure do?
JONES:
Well, the important thing is that customers know, if you're browsing through your Instagram or your TikTok feed and you see somebody you like and you follow promoting something, and they're saying this is the best thing that they've ever had or ever used, it's important to know that they're not being paid to say that, or if they are being paid to say that, well, if there's some disclosure, I think that's fair and reasonable. In radio, in TV, we call it "cash for comment", and the same sort of disclosure should apply online.
JACOBS:
Are you relying on people to dob people in? I mean the ACCC put this call‑out on Facebook, which is kind of ironic when you think about it, but are we relying on people to dob in influencers, and if that is the case, then how can we really control the sort of advertising that is non‑disclosed if influencers aren't doing it themselves?
JONES:
The objective of this week's exercise, and what we're doing right now, is to send a message to advertisers online and promoters online that you've got a responsibility. It's not to rush out there and fine everybody who's doing the wrong thing ‑ there are particularly egregious cases, we wouldn't rule that out, the regulator acting independently will have the ability to apply the law as it stands ‑ but the principle objective is to send a message to people that you've got to follow the laws and you've got to follow the rules, many of whom think that on Instagram or TikTok they can say whatever they like, and they're outside the reach of the law. They're not. Now, of course, limited resources of the regulator, we can't have somebody sitting there watching every single account in every minute of the day. So doing exercises like this, sending a clear message that you've got responsibilities for the things that you say and post online is a part of it. Just as importantly, all of those promoters, all of those businesses out there who are providing benefits or payments to somebody to promote, a clear message to them as well, you've got a responsibility.
JACOBS:
Stephen just really quickly; very, very quick answer here. If they're not disclosing the sponsorship on the posts, could it be that they're not also disclosing the income to the tax office, and that is the real issue here?
JONES:
That's absolutely an issue, and the tax office independently of that is looking through these to ensure that money earned online is treated in exactly the same way as any other form of income; it's taxable income.
JACOBS:
And Stephen, just before we go, the eight‑year‑old boy who was struck by lightning in Wollongong, that's in your electorate, have you reached out to the family at all? Can you give us an update on his condition or how the family are?
JONES:
Look, I cannot. I understand, as you do, that he's in hospital and undergoing care at the moment, but he is in a critical position. I understand he's a visitor to the region. I know the surf club and the rescuers very, very well, so I'm not going to disclose any private matter here. I know them very well. It happened just down the road from where I live. We had a massive storm come through the region yesterday, and this poor boy was caught out. All of our thoughts go out to the family and the friends and the people who are involved in the rescue and the resuscitation, because they're sitting on the edge of their chair as well. Everyone's hoping for the very best for this young man.
JACOBS:
Yeah, we sure are. Stephen Jones, thanks for joining us here at midday.